Tokenized assets need reliable settlement and ownership rights to win over institutions, says Brickken CEO

The next test for tokenization may not be whether assets can be issued on a blockchain, but whether they can be relied on when markets turn volatile. Tokenized assets need reliable settlement, enforceable ownership rights and practical collateral use before institutions can adopt them at scale, according to Edwin Mata, CEO and co-founder of Brickken. “The latest developments in tokenization point to a more demanding phase for financial infrastructure. Regulators are examining whether tokenized assets can function as collateral, settle reliably and retain their legal protections when markets come under pressure,” Mata said in remarks shared with Crypto Briefing. As tokenization gains traction, regulators are turning their attention to what happens after an asset is issued on-chain. The European Securities and Markets Authority, the EU’s top markets watchdog, is consulting on whether tokenized assets can qualify as collateral in the region’s clearing infrastructure. Meanwhile, Singapore’s central bank is advancing its own digital settlement initiatives. Mata said institutions must be able to trust ownership records, settlement finality and the resilience of the systems handling these...